It’s easy to write off the term “digital transformation” as a buzzword that will soon reach the end of the technology hype cycle, but it’s more than that. Digital transformation does not just encompass a group of new technologies – it includes a shift in the way a business works as a whole. It incorporates both technological change and cultural change, and here we’ll reveal why it’s coming for your business whether you’re ready or not. But first…
What is digital transformation?
Digital transformation is the process by which a business migrates to digital technology and accompanies that migration with an internal, cultural shift to reimagine operations.
It forces a business to reckon with the systems it has in place – to evaluate how its current technology serves its goals. A digital transformation requires a business to match both short and long-term goals with the right technologies, and it needs the buy-in of the entire staff to make the transformation a success.
The transformation part comes in when businesses are not just replacing old technology with new. Instead, they use new technologies to transform how they deliver services to customers, communicate internally and externally, and measure success.
Intimidated by the word "transformation"?
Yeah, well, it's a big word. It connotes an overhaul, a revolution, a coup of sorts. But here's what businesses don't realize: In order to stay relevant for the future, your business will have to digitally transform.
Your old phone systems will be defunct in a few years if you don't move to the cloud. If you don't implement a modern security system, your business has a high chance of going under after a cyberattack. The technologies you have in place today will go end of life at some point, and if you don't have a plan to modernize your systems, you'll be up You-Know-What’s Creek without a paddle.
The International Data Corporation predicts that businesses will have spent in excess of $2 trillion through 2019 on digital transformations. 70% of companies either have a digital transformation going on now or are planning on performing one according to Tech Pro Research. Clearly, changes are afoot, and migrating to new technologies that can improve the efficiency and productivity of your business will have to happen sooner or later.
Think of it like email: any business that held off using email eventually had to adopt it. Now, everyone uses email. The technologies involved in a digital transformation will be commonplace in a decade or so, and we won’t remember a time without them.
What technologies are involved, exactly?
Any of the following:
- Cloud communications
- Cloud computing
- Cyber security
- Artificial intelligence
- Machine learning
- The internet of things
- Big data
- Mobility
- Augmented reality
All of these technologies can be overwhelming. Trying to navigate the maze of which ones are right for you is a significant task. Enterprise Visions is the expert in knowing which technologies your business can use and which providers will give you the best solutions. We’ll help you find the quickest way out of that maze.
What’s the cultural part all about?
According to James Bilefield at McKinsey, "To make a digital transformation happen, you need complete alignment – from the board through the executive team through the whole organization. Without that 'air cover' from the board and from shareholders who understand the change that you’re taking the organization through, it is very, very hard to do it successfully."
The people-based part of digital transformation is nearly as important as the technology-based part. The transformation’s goals must align with employee and cultural goals, otherwise the shift will hit roadblocks. If employees are resistant to the change, the transformation won’t take hold.
When a company’s culture is open to doing things a new way, the transformation has a better shot at success. The Wall Street Journal writes, "As the digital transformation gets underway, the organization’s core values may need to be refreshed to embed desirable behaviors, such as cross-functional collaboration, continual learning conducive to digital transformation, and performance metrics and incentive structures aligned with digital culture goals.”
If you want to explore what digital transformation means for your business, contact Enterprise Visions today. We will give you a free, no-obligation consultation to talk about your 2020 roadmap for your business. Call or send a note today. We’d love to discover how we can help you transform.